Correlation Between SentinelOne and Banking Fund

Can any of the company-specific risk be diversified away by investing in both SentinelOne and Banking Fund at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining SentinelOne and Banking Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between SentinelOne and Banking Fund Investor, you can compare the effects of market volatilities on SentinelOne and Banking Fund and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in SentinelOne with a short position of Banking Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of SentinelOne and Banking Fund.

Diversification Opportunities for SentinelOne and Banking Fund

0.31

Correlation Coefficient

SentinelOne  Banking Fund

Weak diversification

The 3 months correlation between SentinelOne and Banking is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding SentinelOne and Banking Fund Investor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banking Fund Investor and SentinelOne is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on SentinelOne are associated (or correlated) with Banking Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Banking Fund Investor has no effect on the direction of SentinelOne i.e., SentinelOne and Banking Fund go up and down completely randomly.

Pair Corralation between SentinelOne and Banking Fund

Taking into account the 90-day investment horizon SentinelOne is expected to under-perform the Banking Fund. In addition to that, SentinelOne is 1.96 times more volatile than Banking Fund Investor. It trades about -0.05 of its total potential returns per unit of risk. Banking Fund Investor is currently generating about 0.07 per unit of volatility. If you would invest  11,698  in Banking Fund Investor on September 6, 2025 and sell it today you would earn a total of  546.00  from holding Banking Fund Investor or generate 4.67% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

SentinelOne  vs.  Banking Fund Investor

SentinelOne

Risk-Adjusted Performance

Weakest

Over the last 90 days SentinelOne has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest inconsistent performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Banking Fund Investor

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Banking Fund Investor are ranked lower than 5 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Banking Fund is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with SentinelOne and Banking Fund

The main advantage of trading using opposite SentinelOne and Banking Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SentinelOne position performs unexpectedly, Banking Fund can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Banking Fund will offset losses from the drop in Banking Fund's long position.

The idea behind SentinelOne and Banking Fund Investor pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.